THE RESILIENCE IMPERATIVE - The Science Behind Organizational Resilience - meQuilibrium
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OVERVIEW TO SUCCEED IN AN ENVIRONMENT OF RAPID CHANGE AND DISRUPTION, ORGANIZATIONS AND THEIR EMPLOYEES NEED TO ACHIEVE A NEW LEVEL OF RESILIENCE. IT’S NO LONGER SIMPLY HOW WELL A PERSON CAN PERFORM IN A STRUCTURED, FAMILIAR SITUATION, BUT HOW PEOPLE REACT AND RESILIENCE ADAPT TO NEW CHALLENGES AND CIRCUMSTANCES. THESE ARE THE CRITICAL SKILLS OF THE WORKFORCE OF TODAY AND TOMORROW. Just as climate change has made extreme weather events more frequent and more intense, globalization and the digital economy have made major business shifts more frequent and more intense. The global COVID-19 pandemic is the most obvious example, but the list is long: rapid changes in international politics and trade, enormous increases in the pace of innovation, vast and rapid technology shifts across nearly all business sectors, major shifts in consumer behavior—rare is the organization that operates the way it did just months ago. As a result, employee resilience and organizational agility have replaced efficiency as the best predictors of business success over time. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 2
Executives believe less than half of their workforce is adaptable to this new world of work, according to a major survey, Mercer's 2020 Global Talent Study. As the study's authors state, "THE QUESTION IS NOT WHO CAN ADAPT BUT HOW BEST TO DEVELOP AN ADAPTABLE WORKFORCE.” Businesses are now reorganizing around the changed needs and behaviors of their customers, for example the mass retailers who now offer curbside pickup or the exponential growth of videoconferencing. This requires companies to rewire ways of working and—even more directly—ways of thinking, re-imagining their organizations and adapting talent accordingly. The level of rapid and disruptive change is revealing the cracks in operational and workforce systems ANDREW SHATTÉ, PH.D. Chief Knowledge Officer and built for efficiency. Amid worries about the economy, job security, their health and the health of their Co-founder loved ones, employees’ capacity to take on change in the workplace has plunged significantly, HR advisory firm Gartner said. “HR leaders now realize that efficient organizations are actually fragile. Most HR leaders expect an impact in next 12 months as organizations shift from designing for efficiency to designing for flexibility.” That’s where building resilience comes in. Beginning in the 1980s, a meQuilibrium co-founder, Andrew Shatté, Ph.D., was among the first in the field of psychology to identify the core capabilities— problem solving, emotional control, optimism, and self-efficacy—of resilience. Shatté and his colleagues adapted the techniques of cognitive behavioral therapy for the real world of employee training. Resilience, their work demonstrated, can be learned, reinforced, and spread through an organization. Co-founder and CEO Jan Bruce built meQuilibrium to help organizations bring Shatté’s work to their entire workforces. JAN BRUCE CEO and Co-founder Resilience helps individuals and organizations bounce back from setbacks, even catastrophic events. Just as importantly, the same capabilities serve a preventive role, putting people in position to adapt to daily events and challenges without the levels of stress, uncertainty, and resistance they would otherwise have experienced. The evidence is prevalent in meQuilibrium’s database of user assessments. Because the digital system can be offered company wide at any scale— it includes companies comprising millions of employees— meQuilibrium has assessed the resilience and tracked the progress of more than 500,000 individuals around the world, amassing 1.5 billion data points in the process. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 3
RESILIENT PEOPLE ARE: 60% OVER 24 MONTHS BEGINNING IN DECEMBER 2018, COMPANIES WITH HIGH RESILIENCE OUTPERFORMED THE DOW JONES INDUSTRIAL AVERAGE BY 116%. less likely to Resilience can be learned—and people with high levels of resilience are 60% less likely to suffer burnout and 31% more engaged, can have a 26% experience burnout reduction in depression risk, and half the stress-related productivity 31% loss as compared to those with low resilience. In short, people who gain resilience are happier, healthier, more engaged, and more effective. This paper explores the research that meQuilibrium’s team has done to understand the issues of resilience and the impact that a targeted resilience training and support system can have on individuals and businesses. more engaged Real-world data demonstrates that, from bottom to top, resilience training and ongoing guidance can improve workforce engagement, 50% mindset, and effectiveness. In this time of evolution, adaptation, and acute—even emergency—events, such as the next pandemic or hack, the companies that build the muscle to continuously and rapidly adapt their models and workforces to changes will be better able to compete. half the stress-related productivity loss meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 4
Key COMPANIES WITH RESILIENT WORKFORCES FINDINGS OUTPERFORM THE MARKET EMPLOYEE RESILIENCE PREDICTS ORGANIZATIONAL AGILITY AND WORKFORCE RISKS RESILIENCE TRAINING CROSSES COMMON ORGANIZATIONAL DIVIDES IN STRESSFUL TIMES AND HIGH-STRESS ENVIRONMENTS, RESILIENCE IS ESPECIALLY VALUABLE RESILIENT WORKFORCES REDUCE COSTS AND RAISE PROFITS RESILIENCE MAKES WORKPLACES WORK meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 5
Understanding RESILIENCE "Dealing with ambiguity has perhaps become the most important power skill during a time when all aspects of life have been upended." – Josh Bersin, Business Resilience: The Global COVID Pandemic Response Study meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 6
RESILIENCE IS THE HUMAN ABILITY TO REMAIN EFFECTIVE DURING TIMES OF UNCERTAINTY AND TO BOUNCE BACK FROM SETBACKS. 1 EMOTION REGULATION The ability to control feelings like anger, fear, or grief in trying situations. Because it involves situational awareness, rethinking, perspective, and—at times— reinvention, resilience is closely tied to positive qualities including creativity, empathy, optimism, and simple good cheer. 2 IMPULSE CONTROL The physical counterpart of emotion control. The ability to control one’s behavior. 3 Scientific study of resilience is growing exponentially. Before the year 2000, there were only CAUSAL ANALYSIS about 30 peer-reviewed resilience studies published in journals each year. By 2016, there The ability to think through issues in new ways were more than 900 per year. The upheavals of 2020 made the trend a tipping point. The so that current or cultural mindset does not organizational, economic, and personal impact of COVID-19 saw an explosion of attention limit one’s ability to address them. to resilience from organization leaders, consulting firms, academics, and business media. 4 Much of the interest has come as psychologists determined that cognitive training could SELF-EFFICACY improve personal resilience. Once seen as an innate characteristic, meQuilibrium's work The belief in your own abilities and your impact demonstrates that resilience can be seen as a set of learnable competencies that mitigate on others. 5 the experience of stress, accelerate response to challenges, and allow people to more readily adapt to change. MEASURED OPTIMISM The ability to be realistic while seeing how a Led by the work of meQuilibrium co-founder Andrew Shatté, employee resilience is a situation might improve. significant subset of resilience research and intervention. meQuilibrium’s insight was that 6 mental health is considered an issue for a small (10%) of the employee population, and that, unfortunately, society stigmatizes those diagnosed with mental health problems or illness. EMPATHY But just as everyone has physical health, every person has mental health, and can benefit The ability to grasp someone else’s perspective from improving it. and approach. 7 Beginning in the 1990s, Shatté and others established that resilient employees demonstrate skills in seven key areas that help them remain psychologically robust when faced with REACHING OUT challenges or adversity: EMOTION REGULATION, IMPULSE CONTROL, CAUSAL ANALYSIS, The ability to make connections so you can lean SELF-EFFICACY, MEASURED OPTIMISM, EMPATHY and REACHING OUT. on others or provide support. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 7
VALIDATING meQuilibrium’s Data To document the correlation between meQuilibrium’s user data analysis and The meQuilibrium assessment correlates highly well-established psychology metrics, meQuilibrium commissioned a series with other measures of resilience, and strongly of independent studies of more than 2,000 respondents from national panels. Each panel completed a survey which included items from the meQuilibrium predicts outcomes such as stress, depression, survey and from common psychometric measures of wellbeing, including: anxiety, and presenteeism. The Psychological Capital Questionnaire (PCQ) Copenhagen Psychosocial Questionnaire (COPSOQ) Perceived Stress Scale (PSS) Patient Health Questionnaire 9-item Depression Scale (PHQ-9) Work Productivity and Activity Index (WPAI) Presenteeism Measure © 2021 New Life Solution Inc. 8 meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 8
BUILDING RESILIENCE The introduction of a digital system for resilience improvement changed companies’ potential for participation from limited, mostly top-down IN AN ORGANIZATION individual training for managers to a whole-company approach that offered culture-defining potential. RECOGNIZING THE VALUE OF RESILIENCE IN To personalize its user interaction and improve results, the meQuilibrium system gathers a uniquely broad spectrum of data points—encompassing AN ORGANIZATION, MEQUILIBRIUM CREATED A focus, engagement, mental state, physical wellbeing, personal situation, and RESILIENCE-BUILDING AND SUPPORT SYSTEM THAT connection—on each user. Its onboarding questions categorize users into COMMONLY REACHES WELL MORE THAN HALF OF AN essential personality tendencies which predict each user’s needs how each ORGANIZATION’S POPULATION. IN DEPLOYMENT, THE individual is likely to react to training. It pinpoints each person’s reaction to the most common stress factors. And it provides a baseline score—the meQ SYSTEM HAS COLLECTED BILLIONS OF DATA POINTS Score—that individuals can use to assess their current resilience and track ON MORE THAN 500,000 USERS FROM A NUMBER OF improvement over time. THE WORLD’S LEADING COMPANIES, PROVIDING DEEP For individuals, this multidimensional assessment leads to a highly personal PERSONAL, ORGANIZATIONAL, AND GLOBAL INSIGHTS. engagement with meQuilibrium’s tools, content and training. The “assessment to assignment” algorithm allows the user’s digital training to focus on each person’s greatest need and highest potential. AT THE TEAM AND ORGANIZATIONAL LEVEL, THE MEQUILIBRIUM DIGITAL SYSTEM OFFERS REAL-TIME INSIGHTS INTO WORKFORCE EFFICACY, WELLBEING, AND MINDSET—INFORMATION THAT IS SIMPLY UNAVAILABLE THROUGH COMMON HR SOURCES AND TOUCH POINTS. And at the global and academic level, the data provides critical information on wellbeing trends, financial impacts, industry variations, and the universal human need for resilience in a vast and varied society. The findings answer critical questions about resilience training and its impact. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 9
WORKPLACES ARE IDEAL FOR RESILIENCE IMPROVEMENT THE WORK ENVIRONMENT, RESEARCH DEMONSTRATES, The trove of research demonstrates that resilience can be learned and improved—by anyone. The training does not need to rise to the level of PROVIDES FERTILE GROUND FOR RESILIENCE TRAINING. cognitive behavioral therapy, which calls for intensive individual work with WORK DECISIONS AND ACTIONS OFFER TRAINEES A a professional therapist, often over long periods of time. Instead, individuals PSYCHOLOGICAL DISTANCE THAT MORE PERSONAL can learn to understand their own patterns of thinking and response, which (FAMILY, FRIENDS) SITUATIONS DO NOT, MAKING IT allows them to situationally end-run their more deeply held psychological patterns and history. EASIER TO APPLY RESILIENCE SKILLS THAT LOWER THE EMOTIONAL TEMPERATURE OF THE MOMENT, IMPROVE DECISION-MAKING AND REDUCE STRESS. 3.1x more resilience improvement MEMBERS WHO COMPLETED A DOZEN OR MORE SKILLS HAD 211% MORE RESILIENCE IMPROVEMENT, OR 3.1x THE RESILIENCE IMPROVEMENT OF MEMBERS WHO COMPLETED FEW TO NO SKILLS. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 10
Businesses with Resilient Employees OUTPERFORM THE MARKET AMONG MEQUILIBRIUM’S LARGEST PUBLICLY-TRADED CUSTOMERS, THOSE COMPANIES WITH THE HIGHEST RESILIENCE SCORES AT BASELINE OUTPERFORMED THE DOW JONES INDUSTRIAL INDEX (DJIA) BY 116% OVER THE LAST 24 MONTHS. 24m STOCK PRICE CHANGE Change in Stock Price: December 2018 — December 2020 by aggregate resilience scores at Baseline. 67% 31% DJIA BENCHMARK TOP QUARTILE RESILIENCE BASELINE meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 11
EVEN SMALL AMOUNTS OF TRAINING HAVE A POSITIVE IMPACT EVIDENCE SHOWS A STRONG “DOSING EFFECT”— EACH TRAINING SESSION PROVIDES MEASURABLE IMPROVEMENT — FOR TIME SPENT IN PERSONALIZED, TARGETED RESILIENCE TRAINING. USERS WHO STARTED WITH LOW RESILIENCE SAW EXCEPTIONAL LEVELS OF IMPROVEMENT. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 12
In work published in the Journal of Occupational and Environmental Medicine, meQuilibrium’s research team showed resilience skill-building’s “dosing effect”. For the 600 randomly selected participants, correlation was nearly linear: time spent training led to markedly improved resilience levels, perceived stress levels, and reduced somatic (physical) symptoms of stress. THE AVERAGE MEMBER SAW A 5% IMPROVEMENT IN RESILIENCE WITH SIX HOURS OF TRAINING. EACH ADDITIONAL HOUR OF RESILIENCE TRAINING LED TO AN INCREASE OF 1.3% IN RESILIENCE. Having a lower level of resilience at the time of enrollment tended to produce greater improvements in resilience for the same time invested in training. A member who began the program with low levels of resilience could expect to see a 10% improvement with just 4 hours of training. The study also found a strong dosing effect for stress reduction. Depending on time invested in the program, decreases in perceived stress ranged from 0% to 13%, and decreases in somatic symptoms ranged from 0% to 9%. After 5 hours of training, those with lower baseline resilience reported a 15% and 11.1% decrease in stress and somatic manifestations, respectively. 20 15 14% 15% 16% 2.8x USERS WITH THE HIGHEST NEED 13% 12% HAVE A HIGHER RETURN ON TIME 11% SPENT ON RESILIENCE 10% 9% 9% 10x 10 8% 8% 7% 6% 6% 5% 5 4% USERS WHO MADE SIGNIFICANT 3% INVESTMENTS IN RESILIENCE 2% 1% TRAINING HAD ON AVERAGE 10x 0% THE IMPROVEMENT OF USERS WHO MADE MINIMAL INVESTMENTS 0 1 2 3 4 5 6 7 8 9 meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 13
RESILIENCE SKILLS By just about any measure of either overall wellbeing or employment effectiveness and satisfaction, resilience leads to success. IMPROVE LIVES ACROSS Resilient people are much less likely to burn out, quit, or spiral into more MANY MEASURES serious issues such as depression or unmanaged anger. They suffer fewer of the physical (somatic) manifestations of stress, such as insomnia. And they are more engaged, contributing more to an organization’s efforts. THE CORRELATIONS ARE TOO STRONG TO IGNORE: Low resilience correlates with poor overall health. In fact, employees with low PEOPLE WITH HIGH RESILIENCE SKILLS ARE ON THE resilience are more than twice as likely to be overweight and twice as likely WHOLE ARE MORE ENGAGED, MORE EFFECTIVE, to report a hospital stay in the past year. In addition, 50 percent of those with HAPPIER AND HEALTHIER. low resilience have indications of depression, compared to only one percent of those with high resilience. 5x AS MANY HIGH RESILIENCE 30% MORE MENTALLY AGILE 3x BURNOUT SCORES ARE MORE USERS REPORT BEING IN VERY THAN LESS RESILIENT THAN 3x LARGER AMONG GOOD OR EXCELLENT HEALTH EMPLOYEES THOSE WITH LOW RESILIENCE meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 14
RESILIENCE DATA PROVIDES PREDICTIVE INSIGHTS ACROSS TIME, TEAMS, REGIONS, AND INDUSTRIES, RESILIENCE ENGAGEMENT BRINGS DEEP LEARNING TO ORGANIZATIONS. Significant population and trend analysis requires robust data. Analysis of meQuilibrium’s dataset, along with real-world evidence, shows that organizations offering resilience assessments and training to their entire workforces are rewarded with statistically valid insights into population trends for mindset, resilience, and wellbeing. The data presented here is an excerpt of actual findings for a large global company that had recently begun to offer resilience services during the early stages of the COVID-19 pandemic. Human Resource management at the company immediately reacted to this risk analysis data, looking to improve many of the numbers over time. EMPLOYEE CATEGORIES AT HIGH RISK FOR ANXIETY 30 Percentage of Users at Very High Risk Compared to meQ Norm 20 EUROPE, MIDDLE EAST, 10 AMERICA AMERICA NORTH AFRICA OTHER 18 - 29 30 - 39 40 - 49 LATIN 50-59 ASIA RESILIENCE YES 60+ 0 NO AGE GROUP MANAGER REGION meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 15
EMPLOYEE CATEGORIES 15 AT HIGH RISK FOR BURNOUT 12 Percentage of Users at Very High Risk EUROPE, MIDDLE EAST, Compared to meQ Norm 9 6 AMERICA AMERICA NORTH AFRICA OTHER 18 - 29 30 - 39 40 - 49 LATIN 50-59 ASIA YES 60+ NO 3 AGE GROUP MANAGER REGION EMPLOYEE CATEGORIES 15 AT HIGH RISK FOR LOW PRODUCTIVITY 12 Percentage of Users at Very High Risk Compared to meQ Norm EUROPE, MIDDLE EAST, 9 6 AMERICA AMERICA NORTH AFRICA OTHER 18 - 29 30 - 39 40 - 49 LATIN 50-59 ASIA YES 60+ 3 NO AGE GROUP MANAGER REGION meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 16
EMPLOYEE CATEGORIES 20 AT HIGH RISK FOR LOW RESILIENCE Percentage of Users at Very High Risk 15 EUROPE, MIDDLE EAST, Compared to meQ Norm 10 AMERICA AMERICA NORTH AFRICA OTHER 18 - 29 30 - 39 40 - 49 LATIN 50-59 ASIA YES 60+ NO 5 AGE GROUP MANAGER REGION PREDICTIVE INSIGHTS THINKING can also be derived from tracking 22% EXTERNALIZING TRAPS cognitive patterns such as EMPATHY, EMOTIONAL INTELLIGENCE, and Percentage of users with 30% MAGNIFIYING & MINIMIZING PROBLEM-SOLVING common thinking traps 33% EMOTIONAL REASONING 34% OVERGENERALIZING 37% PERSONALIZING 40% MIND READING 50% WORST CASE THINKING meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 17
For many organizations, WORKFORCE RESILIENCE IS THE OVERLOOKED ELEMENT. PREDICTS WORKS ACROSS CRITICAL IN REDUCES COST MAKES ORGANIZATIONAL COMMON STRESSFUL AND RAISES WORKPLACES AGILITY DIVIDES TIMES PROFITS WORK meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 18
EMPLOYEE RESILIENCE AGILITY ATTRIBUTES IS THE BASIS OF ORGANIZATIONAL ADAPTIVITY CREATIVITY AGILITY +28% RESILIENCE IS A KEY DRIVER +30% HIGH RESILIENCE SCORES ORGANIZATIONAL AGILITY CALLS FOR LEADERSHIP, OF THE ABILITY TO ADAPT CORRESPOND TO 30% HIGHER TO CHANGE. DEMONSTRATIONS OF NEW VISION, TECHNICAL FACILITY, AND OPERATIONAL THINKING AND CREATIVITY. FLEXIBILITY. BUT BUSINESSES ARE ONLY AS AGILE Employees who had the AS THEIR WORKFORCES ALLOW. A WORKFORCE highest resilience as • willingness to go beyond THAT IS RESISTANT OR OVERWHELMED BY CHANGE measured by meQ Score were the status quo 28% more able to adapt to WILL FALTER AT REINVENTION. • a desire to be innovative changing circumstances, and were more likely to display • a pattern of trying The workforce qualities that manifest as agility at the organizational attributes such as creativity, numerous methods to level are, at the individual level, resilience. meQuilibrium’s research acquiring new skills, adapting find new solutions shows that resilience is the basis of creativity, innovation, and positive to others and responding change management. quickly to new challenges. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 19
AGILITY ATTRIBUTES INTERPERSONAL QUICK THINKING SKILL BUILDING ADAPTABILITY +30% HIGH RESILIENCE SCORES +32% RE-SKILLING AND UPSKILLING +20% INTERPERSONAL ADAPTABILITY CORRELATE TO A 30% HIGHER TALENT IS CRITICAL FOR A INCLUDES THE ABILITY TO WORK ABILITY TO RESPOND QUICKLY RESILIENT AND ADAPTIVE WELL WITH DIFFERENT TYPES TO UNFORESEEN CHALLENGES. ORGANIZATION. OF PEOPLE—A CRITICAL ABILITY Those with low resilience IN TIMES OF CHANGE AND AN • reorganizing work to adapt are 32% less likely to engage ERA WHEN COMPANIES ARE to new circumstances in training and skill- MAKING DELIBERATE EFFORTS improvement to enhance their AT DIVERSITY AND INCLUSION. • quickly resolving problems performance compared to The highest levels of resilience • rapidly analyzing novel those with highest resilience. are associated with 20% higher situations interpersonal adaptability. • more likely to volunteer for new and different • an openness to other assignments viewpoints • to improve their skills • placing a high value on relationships and • proactively find training collaboration opportunities • willingness to adjust one’s • track innovation one’s communication style to fit tasks different circumstances. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 20
UNANTICIPATED Without Workforce Resilience CONSEQUENCES: HIGHLY AGILE TEAMS CAN SUFFER Because agility requires constant adaptation, it calls for psychological skills that support positive reactions to change. meQuilibrium’s data shows that high organizational agility demands in a low-resilience workforce is associated with +27% depression risk increase much higher levels of depression and anxiety risk. +54% Improving both resilience and agility show strong benefits across three outcomes: depression, anxiety, and absenteeism. HOWEVER, BUILDING AGILITY ALONE IN LOW- RESILIENCE EMPLOYEES MAY PRODUCE UNANTICIPATED CONSEQUENCES. anxiety risk increase +5.7 DAYS PER YEAR absenteeism increase meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 21
RESILIENCE TRAINING Works Across Common Organizational Divides The idea of resilience is universal. Religions, literature, and drama from every culture and every moment in history reflect the importance of personal and group resilience in the human experience. The fact that virtually everyone appreciates and desires resilience allows corporate resilience initiatives to cross all the matrices that make up a diverse organization. Some of meQuilibrium’s first deployments were in large call centers, where the staff had limited autonomy and had to remain positive and professional at all times. As meQuilibrium’s deployments grew, they encompassed knowledge workers, health care professionals, government workers, and senior executives, often in large (Fortune 500) companies that offer the digital system to every employee. As usage grew and meQuilibrium’s science team gathered data, evidence showed that resilience is an asset for every job. As companies increasingly recognize the value of diversity and the importance of cultural awareness, resilience training offers common ground and unifies successes. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 22
EVERYONE BENEFITS FROM RESILIENCE WE ALL NEED RESILIENCE: AT EVERY LEVEL OF INCOME AND EDUCATION, MORE THAN 40 PERCENT OF PEOPLE STUDIED HAVE LOW MEQUILIBRIUM RESILIENCE SCORES. To drill down into the need for resilience training bottom to top, meQuilibrium’s research team contrasted resilience levels across a range of income and education levels, controlling for the effects of age and gender. HIGHLY PAID, HIGHLY EDUCATED EMPLOYEES ARE AT RISK FOR THE NEGATIVE CONSEQUENCES OF LOW RESILIENCE: feeling burned out, having sleep issues, experiencing more absences, and having impaired productivity. INCOME Low resilience was common among employees regardless 41% OF THOSE WHO EARNED $150,000 OR MORE A YEAR HAVE LOW RESILIENCE 59% 54% 46% of compensation. OF THOSE WHO EARNED BETWEEN $75,000 AND $100,000 HAVE LOW RESILIENCE THE HIGHLY EDUCATED, WELL-PAID, BUT LOW RESILIENT POPULATION HAD SEVERELY HEIGHTENED RISKS FOR DEPRESSION (3x) and twice the rate of absence and turnover intent than those who scored high in resilience. 40% 60% EDUCATION OF THOSE WITH A MASTER'S ER OV DEGREE OR HIGHER SCORED BELOW A similar pattern of findings AVERAGE FOR RESILIENCE was seen for resilience by level 47% 53% of educational attainment. OF THOSE WITH A BACHELOR'S DEGREE SCORED BELOW AVERAGE FOR RESILIENCE meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 23
RESILIENCE SKILLS ADDRESS EVERYDAY CHALLENGES IN EVERYDAY LANGUAGE The broad appeal of resilience is reflected in the kinds of psychological skills that highly resilient people demonstrate. So is the improvement that diverse workforces gain from resilience training. In a before and after study, meQuilibrium users reported marked gains in everyday skills. AVERAGE SKILL MANIFESTATION IMPROVEMENT COOL YOUR ANGER When things go wrong, I get angry. 20% CURB YOUR FRUSTRATION When I am stuck in a problem, I get easily frustrated. 16% EMBODY YOUR CORE VALUES I feel "blah" about my life. 12% TRAIN YOURSELF TO SEE THE POSITIVE I can easily dispel negative thoughts that pop into my mind. 38% CLEAR YOUR HEAD I easily get bogged down in thoughts that turn over and over in my mind. 30% meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 24
RESILIENCE IS INVALUABLE IN STRESSFUL TIMES The evidence is overwhelming that resilience is valuable across a variety of mental health, physical health and general wellbeing outcomes. But resilience has even more value when the going gets tough. Whether a company is facing a crisis or a turning point, or is by its nature a high-stress environment, resilience skills are reflected in employee effectiveness, happiness, and engagement. PURPOSE BURNOUT TURNOVER INTENT IN HIGH CHANGE SCENARIOS, GIVING EMPLOYEES FACED WITH THE STRESS RESILIENT AND AGILE EMPLOYEES INDIVIDUALS A SENSE OF CONNECTION THAT COMES WITH AN ENVIRONMENT ARE ALMOST 50% LESS LIKELY TO TO AND MEANING IN THEIR WORK IS WHERE CHANGE IS THE ONLY CONSTANT QUIT. NOT ONLY GOOD FOR THE EMPLOYEE, ARE AT HIGH RISK FOR BURNOUT, which BUT ALSO KEY TO ENSURING A can show up as physical or emotional The positive impact of resilience and HIGH-FUNCTIONING, COMPETITIVE exhaustion, cynicism, detachment, agility extends beyond burnout to ORGANIZATION. or feelings of being ineffective. turnover intent. Employees who are both highly resilient and have higher Employees who have a personal Resilience and agility are strongly agility are about half as likely as those connection to their work and see how protective against work burnout. with low resilience and agility to their work and life purposes intersect plan to leave their job in the next are more committed and motivated six months. on the job. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 25
EVEN IN CHALLENGING VOLUME 59 - ISSUE 2 - P 135 ENVIRONMENTS, The Positive Effect of Resilience on Stress and Business Outcomes in Difficult Work Environments RESILIENT WORKERS CONTINUE TO THRIVE Outcomes comparing high and low resilience under high and low strain work environments. RESEARCH SHOWS A POWERFUL PROTECTIVE EFFECT OF RESILIENCE FOR ALL EMPLOYEES, BUT A PARTICULARLY STRONG EFFECT FOR THOSE EMPLOYEES WHO WORK IN SITUATIONS WHERE THEY ARE REQUIRED TO DELIVER QUICKLY, HAVE LITTLE AUTONOMY AND RECEIVE RELATIVELY LITTLE SUPPORT. While meQuilibrium’s current client population reflects a huge range of occupations and work situations—front-line workers, knowledge workers, management, professionals, and executives. In a peer-reviewed article published in the Journal of Occupational and Environmental Medicine, meQuilibrium studied resilience in high-stress workplaces. The work environments were assessed using elements from the Copenhagen Psychosocial Questionnaire, specifically job demands, autonomy, and social support at work. • Across every outcome and regardless of work environment, highly resilient employees fare better than less resilient employees. • Resilience often has its highest payoff in high strain environments. For depression, absenteeism and productivity impairment, resilience is more protective in high strain relative to low strain environments. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 26
At Times of Acute Crisis, RESILIENCE IS PARAMOUNT meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 27
THE COVID-19 PANDEMIC finding: High resilience inoculated workers JOB STRESS AMONG WOMEN increased by nearly against personal stress. 20%, while job stress among men increased PRESENTED A REAL-WORLD just 1.6%. In addition to job stress, the rate of LABORATORY FOR RESILIENCE Across all industry segments perception of decreased motivation was SUBSTANTIALLY HIGHER RESEARCH IN MYRIAD WAYS, FROM employer support had a mitigating impact on AMONG WOMEN (31%) THAN AMONG MEN (21%). MEQUILIBRIUM’S CONCERN FOR ITS stress and it increased motivation. In addition, resilience training worked for those users who OWN WORKFORCE TO INDUSTRY- EMPLOYEES IN INDUSTRIES SUCH AS were most engaged with the meQuilibrium SCALE ANALYSIS OF CRISIS solution had more positive outcomes. COMMUNICATIONS, TECHNOLOGY SERVICES AND FINANCE/INSURANCE showed negative impacts REACTION AND MANAGEMENT. from the transition to working from home and TECH INDUSTRY EMPLOYEES had the most all the changes entailed. In contrast, employees The ultimate finding: It’s critical broadly negative changes of the industries working in Health Products & Devices (mostly broken out in the study (others included finance, for employers to understand the pharmaceutical companies) and Manufacturing communications, manufacturing, health state of the workforce and protect products and health services), with DOUBLE-DIGIT showed some of the lowest NEGATIVE OUTCOMES related to emotional wellbeing in the early months against falling behind. INCREASES in JOB STRESS (11%), DISORDERED of the pandemic. SLEEP (14%), BURNOUT (23%), and an almost 40% Managers who saw vulnerable workforces and DROP IN MOTIVATION. responded with support—from resilience training to facilitating working at home to childcare YOUNGER WORKERS generally had stronger and more—were much better able to keep their reactions than older ones. Workers under 40 workforces engaged and encouraged. experienced a 23% increase in disordered sleep, versus an increase in sleep issues of only 1% meQuilibrium’s study of 7,000 workers compared in older workers. MOTIVATION HAD A SERIOUS changes in job stress, burnout, motivation and DECLINE, with workers under 40 experiencing a sleep between December 2019 and June 2020. decline of 45%, while workers over 40 suffered a The large sample was drawn from a range of 14% decline in motivation. There was also a 19% organizations and allowed for data analysis by INCREASE IN THE RISK OF BURNOUT among the industry and demographic cohorts. younger group, while the older group experienced a 3% decreased risk of burnout between December The data showed some surprises: particularly 2019 and June 2020. the vulnerability of younger workers. The major meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 28
OVERALL, MEQUILIBRIUM USERS REPORTED MENTAL CHALLENGES IN THE FIRST 6 MONTHS OF 2020. HOWEVER, EMPLOYER SUPPORT MADE A CONSIDERABLE DIFFERENCE. THOSE MOST ENGAGED WITH RESILIENCE TRAINING FARED CONSIDERABLY BETTER THAN WORKERS WHO WERE LESS ENGAGED. STRONGLY SUPPORTED LESS WELL SUPPORTED MOST ENGAGED LEAST ENGAGED 35 33% 30 29% 35 32% 25 30 27% 25 20 18% 21% 20 15 15 15% 10 9% 6% 10 5 3% 1% 5 1% -4% -1% 0 0 WORK STRESS BURNOUT DISORDERED SLEEP -5 STRESS BURNOUT MOTIVATION SLEEP Because all of the subjects were meQuilbrium users, the results are specific to the meQuilibrium product. Those MOST ENGAGED with resilience training FARED CONSIDERABLY BETTER 33% 9% -29% -27% than workers who were less engaged. INCREASED INCREASED DECREASED DECREASED FEELINGS OF FEELINGS OF FEELINGS OF FEELINGS OF STRESS BURNOUT MOTIVATION POSITIVITY meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 29
ROI: RESILIENT WORKFORCES REDUCE COSTS AND RAISE PROFITS meQuilibrium research shows that when people can improve their coping skills and become more resilient, they become more engaged, more productive, are less likely to miss work or quit their jobs. At scale, that can be worth millions. An increase in resilience helps stress symptoms and illness rates, absences, disability rates and duration, turnover, work engagement, and productivity. The meQuilibrium Score measures the change in those factors—and supports a financial analysis. Data on resilience combined with company data on pay scales, absence and turnover rates demonstrates the payoff. COMMONLY-ACHIEVED RESILIENCE IMPROVEMENTS STAND TO RAISE PERFORMANCE BY $1908 PER MEMBER OR MORE THAN $2.4M PER 10K EMPLOYEES . The model assumes an average salary of $50,000, 25% enrollment of eligible users, 50% engagement, and a 30% resilience improvement, all typical of a meQuilibrium implementation. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 30
WORKFORCE ROI IS DIRECTLY IMPROVED BY RESILIENCE TRAINING OUTCOMES Any employee is at risk for underperformance, whether through absence, "presenteeism", or burnout. Highly resilient employees are both more productive and more effective. PERFORMANCE 80 ABSENCE 70 60 61% WPAI PRESENTEEISM BURNOUT 50 40 25% 30 30% 31% 20 15% 10 8% 0 LOWEST RESILIENCE QUARTILE HIGHEST RESILIENCE QUARTILE meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 31
MENTAL HEALTH Percentage of population with MODERATE OR HIGHER DEPRESSION (PHQ-9) and MODERATE OR HIGHER Perceived Stress Scale Scores by ANXIETY (GAD-7) per quartile RESILIENCE and POSITIVITY Level MODERATE OR HIGHER ANXIETY (GAD-7) MODERATE OR HIGHER DEPRESSION PHQ-9 20.4% LOW RESILIENCE 46.9% 9.5% 50 40 36.3% HIGH RESILIENCE 30 20 9.4% HIGH RESILIENCE & 10 HIGH MINDFULNESS 0 0.0% 0.1% LOWEST RESILIENCE QUARTILE HIGHEST RESILIENCE QUARTILE meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 32
PHYSICAL HEALTH 80 72% HEALTH STATUS OVERALL meQ SCORE 70 AND HEALTH STATUS 60 50 48% 40 31% 30 17% 20 10 0 QUARTILE 1 QUARTILE 2 QUARTILE 3 QUARTILE 4 LOW RESILIENCE HIGH RESILIENCE PERCENT OF RESPONDENTS 60% POOR SLEEP REPORTING SYMPTOMS 50% TENSION 40% PALPITATIONS 30% HEADACHE 20% STOMACH DISTRESS 10% 0.0 35 40 44 49 53 58 62 67 71 76 80 meQ SCORE meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 33
RESILIENCE MAKES WORKPLACES WORK More than 20 years of research by Gallup shows that employee engagement is strongly connected to outcomes essential to a business’s financial success, including profitability, productivity, and customer satisfaction. Resilient employees have almost 2x the sense of connection to meaning and purpose at work which is key to ensuring a high functioning competitive organizations. MEANING AND PURPOSE AT WORK AGILITY 6 5 5 6.0 4 4.8 4 3 3 3.5 2 2 2.3 1 1 0 0 HIGH RESILIENCE LOW RESILIENCE HIGH RESILIENCE AND LOW RESILIENCE AND AND AGILITY AND AGILITY ADAPTIVE CAPABILITY ADAPTIVE CAPABILITY meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 34
RESILIENCE MAKES WORK A HAPPIER, HEALTHIER EMPLOYEE EXPERIENCE Improving resilience has numerous positive benefits for employee experience. In addition to meQuilibrium’s own research, management research conducted by multiple independent researchers confirms that: • Resilience is associated with positive perceptions about work such as satisfaction, commitment, and good citizenship • Resilience is associated with fewer negative perceptions about work such as disengagement and cynicism as well as disruptive behaviors • Employees with high levels of resilience report a lower intent to quit and look for other jobs less often. • Those with high resilience are more open and less cynical to change in their organizations. • Resilient individuals report feeling more hopeful and optimistic about their jobs. • Those with high resilience have higher levels of optimism about their ability to succeed. • Resilient employees report higher levels of psychological wellbeing at work meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 35
RESILIENCE BOOSTS FOCUS, ENERGY, AND DEDICATION MEQUILIBRIUM’S RESEARCH SHOWS DEFINITIVELY THAT RESILIENCE HAS A POWERFUL, POSITIVE EFFECT ON EMPLOYEE PRODUCTIVITY. RESILIENCE IMPROVEMENT INCREASES THE ABILITY TO FOCUS AND REDUCE DISTRACTIONS. In addition to our own research, the peer-reviewed management literature strongly supports the consistent and strong association between resilience and job performance. • Self-reported productivity, manager-reported productivity, and objectively measured performance all improve with resilience • The resilience of supervisors seems to improve the performance of the workers they supervise • Interventions that improve resilience produce measurable improvements in performance • Resilience makes employees more confident when taking on challenging tasks • Individuals with higher resiliency are more energized and are able to come up with multiple solutions to problems than their low-resilience counterparts • Resilient employees are more likely to engage in positive behavior such as mentoring newcomers meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 36
Finding RESILIENCE MAKE NO MISTAKE, BECOMING RESILIENT IS A SCIENCE. Success and resilience need each other, it’s that simple, and it’s something meQuilibrium knows a lot about. Responding to evolving market demands successfully doesn’t happen without a resilient workforce of people. Our resilience solutions help individuals rise above everything that life throws at them. Our workforce analytics reveal what’s impacting performance so leaders can make more informed decisions about their people and their business in ways that enable the organization to shift and meet these demands head on. The result of being more resilient not only changes the way organizations grow and how people perform, it lets us thrive at work and in life. Being resilient makes us better teammates, more present family members, and a stronger culture of humans. It’s that simple. meQuilibrium is changing the way organizations adapt for the now and prepare for the future. LET'S TALK meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 37
SOURCES Mercer, 2020 Global Talent Trend Study Bryan, Jordan. “Build Organizational Resilience for Today and Tomorrow” Gartner, October 2020 Josh Bersin. Business Resilience: The Global COVID Pandemic Response Study, 2020 Smith, Brad, Shatté, Andrew, Perlman, Adam, Siers, Michael, and Lynch, Wendy. “Improvements in Resilience, Stress, and Somatic Symptoms Following Online Resilience Training: A Dose-Response Effect” Journal of Occupational and Environmental Medicine, Volume 60, Issue 1, January 2018, Pages 1-5 meQuilibrium, Resilience and Agility: The Dynamic Duo for the New World of Work, 2019 meQuilibrium, High Education and Income Do Not Guarantee a Resilient Employee, 2017 Shatté, Andrew, Perlman, Adam, Smith, Brad, and Lynch, Wendy. “The Positive Effect of Resilience on Stress and Business Outcomes in Difficult Work Environments” Journal of Occupational and Environmental Medicine, Volume 59, Issue 2, February 2017, Pages 135-140 Kristensen, TS, Hannerz, H, Høgh, A and Borg, V. The Copenhagen Psychosocial Questionnaire (COPSOQ). A tool for the assessment and improvement of the psychosocial work environment. Scand J Work Environ Health. Smith, Brad. The Impacts of COVID-19 on Workforce Resilience, meQuilibrium, 2020 Harter, Jim and Schmidt, Frank. “Causal Impact of Employee Work Perceptions on the Bottom Line of Organizations” Journal of Perspectives on Psychological Science, Volume 5, Issue 4, August 2010, Pages 378-389. meQuilibrium: The Resilience Imperative © 2021 New Life Solution Inc. 38
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